Many privately owned banks in China are getting ready for big data banking to gain better positions. (Photo : www.thestar.com.my)
An industry expert advised privately owned Chinese banks to use big data if they were to compete with rivals backed by Internet companies in the increasingly competitive online market, according to an article published by China Entrepreneur.
In an interview with China Entrepreneur, Irene Xu, practice lead for customer intelligence at SAS North Asia, said that private banks, which rely mainly on an "asset-light" business model with few physical outlets and a relatively strong focus on online operations, now face tough competition from rivals, such as the strong online presence of companies like Tencent's WeBank.
Xu said that SAS can provide solutions that can analyze user data and help privately owned banks to better position their businesses in the online arena.
The report said that the sources of user data for business have expanded after Internet access in China improved, especially through mobile devices, although much of these data are fragmented or false.
According to the report, the effort of some online peer-to-peer lending platforms to build their businesses using big data failed because they were not able to establish a comprehensive database.
The report said that several companies, including SAS, have been trying to develop technologies to sift through data collected by businesses and reject information that are less credible. SAS has made a breakthrough by analyzing audio recordings of phone calls made by customers, cutting down the time needed to sort potential problems with incoming calls and service costs.
Xu said that their company has provided Chinese PC company Lenovo with audio analytics solution, which she believes can also be applied to the banking sector.
Xu said that although banks and e-commerce operators such as the Alibaba Group managed to have more comprehensive and accurate user data than other businesses to take advantage of, they will still need the services of third-party big data solutions providers.
